Vietnam becomes India's fastest-growing rice markets Exports

DNHN - In May 2023, Vietnam's imports of rice from India reached 101 thousand tonnes, an increase of 56.64 percent over the same month in 2022.

Vietnam's rice market recorded an all-time high level of imports from India in 2023, reaffirming India's vital role in supplying rice to meet domestic production and consumption requirements. According to the Vietnam Trade Office in India, Vietnam imported 367.5 thousand tonnes of rice from India in the first five months of this year, a 31.76 percent increase over the same period last year. This places Vietnam in eighth place among importers of Indian rice.

In May 2023, Vietnam's imports of rice from India reached 101 thousand tonnes, an increase of 56.64 percent over the same month in 2022. This means that Vietnam is now the fourth largest importer of Indian rice by volume this month.

The significant increase in rice imports from India has benefited the Vietnamese economy in numerous ways. By the ASEAN-India Trade in Goods Agreement (AIFTA), rice imported from India is exempt from import duties, giving Vietnamese businesses a competitive and price advantage. This has encouraged the use of Indian rice in numerous industries, including the production of noodles, cakes, animal feed, and beer and wine.

In addition to its benefits, importing rice from India also presents some obstacles. Domestic businesses are concerned about the inadequate management of imported goods, which has led to the importation of rice to Vietnam and the subsequent mixing of its origin before exportation. A case in point is the recent seizure in Ben Tre province of tens of thousands of bags of imported white rice from India that lacked the required Vietnamese sub labels.

In response to this complex circumstance, the Vietnamese government has intensified its management of the region to detect and strictly prosecute acts of rice product smuggling and commercial fraud. Likewise, Vietnamese businesses are urged to contact their Indian export partners to verify the status of goods and ensure compliance with the laws of both nations.

Because the rice market continues to expand rapidly, Vietnam has the chance to solidify its position as one of India's principal rice-supply partners. To maintain and expand this market sustainably, however, both parties must exercise caution and vigilance.

PV (t/h)